Revolving Commitment definition: Copy, customize, and use instantly
Introduction
The term "Revolving Commitment" refers to a lender’s agreement to provide a borrower with revolving credit, allowing multiple drawdowns and repayments up to a specified limit. It is essential for managing liquidity, ensuring financial flexibility, and defining the borrowing capacity within a credit agreement.
Below are various examples of how "Revolving Commitment" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Revolving Commitment" as a maximum credit limit
This definition ties "Revolving Commitment" to the total lending cap.
"Revolving Commitment" means the maximum principal amount a lender agrees to make available under a revolving credit facility, subject to the terms and conditions of the credit agreement.
Definition of "Revolving Commitment" as a renewable borrowing capacity
This definition connects "Revolving Commitment" to reusability.
"Revolving Commitment" refers to the aggregate principal amount that may be borrowed, repaid, and reborrowed during the term of the loan, up to the established limit.
Definition of "Revolving Commitment" as a bank’s funding obligation
This definition links "Revolving Commitment" to lender responsibilities.
"Revolving Commitment" means the contractual obligation of a lender to provide revolving loans to the borrower, subject to availability and borrowing conditions.
Definition of "Revolving Commitment" as a working capital facility
This definition applies "Revolving Commitment" to short-term financing.
"Revolving Commitment" refers to the portion of a credit facility designated for financing a borrower’s ongoing operational needs, including accounts payable and inventory purchases.
Definition of "Revolving Commitment" as a liquidity management tool
This definition ties "Revolving Commitment" to cash flow management.
"Revolving Commitment" means a financial arrangement allowing a borrower to access funds on an as-needed basis to support liquidity requirements.
Definition of "Revolving Commitment" as a revolving credit facility component
This definition connects "Revolving Commitment" to structured loan agreements.
"Revolving Commitment" refers to the aggregate amount committed by one or more lenders to fund revolving loans under a syndicated or bilateral credit facility.
Definition of "Revolving Commitment" as a borrowing base facility
This definition links "Revolving Commitment" to asset-backed borrowing.
"Revolving Commitment" means a credit arrangement where the borrowing capacity is determined based on the value of specified collateral, such as receivables or inventory.
Definition of "Revolving Commitment" as an undrawn loan obligation
This definition applies "Revolving Commitment" to unused credit availability.
"Revolving Commitment" refers to the portion of a revolving credit facility that remains undrawn but is contractually available to the borrower.
Definition of "Revolving Commitment" as a multi-currency credit line
This definition ties "Revolving Commitment" to foreign currency financing.
"Revolving Commitment" means a loan facility that permits borrowing in multiple currencies, subject to agreed-upon exchange rate adjustments.
Definition of "Revolving Commitment" as a seasonal borrowing facility
This definition connects "Revolving Commitment" to periodic financial needs.
"Revolving Commitment" refers to a credit facility structured to support seasonal cash flow fluctuations, allowing businesses to borrow and repay funds as needed.
Definition of "Revolving Commitment" as a commitment reduction provision
This definition links "Revolving Commitment" to contractual adjustments.
"Revolving Commitment" means the lender’s obligation to provide credit, which may be permanently reduced or terminated based on pre-agreed contract terms.
Definition of "Revolving Commitment" as a secured revolving loan agreement
This definition applies "Revolving Commitment" to collateral-backed loans.
"Revolving Commitment" refers to a lending arrangement secured by assets such as accounts receivable or inventory, allowing repeated borrowing and repayment.
Definition of "Revolving Commitment" as a floating rate borrowing facility
This definition ties "Revolving Commitment" to interest rate structures.
"Revolving Commitment" means a credit facility where borrowing costs are based on a floating interest rate, such as LIBOR or SOFR, plus a contractual margin.
Definition of "Revolving Commitment" as a cash management credit line
This definition connects "Revolving Commitment" to treasury operations.
"Revolving Commitment" refers to a financing arrangement used to optimize corporate cash management, ensuring short-term funding availability.
Definition of "Revolving Commitment" as an interbank lending facility
This definition links "Revolving Commitment" to interbank agreements.
"Revolving Commitment" means a lending arrangement where financial institutions provide short-term liquidity to each other under agreed credit limits.
Definition of "Revolving Commitment" as a debt refinancing tool
This definition applies "Revolving Commitment" to restructuring debt obligations.
"Revolving Commitment" refers to a loan arrangement that allows a borrower to roll over existing debt obligations by drawing new advances.
Definition of "Revolving Commitment" as a syndicated loan allocation
This definition ties "Revolving Commitment" to lender participation.
"Revolving Commitment" means the portion of a syndicated loan facility allocated to a particular lender, defining their maximum exposure.
Definition of "Revolving Commitment" as a revolving letter of credit facility
This definition connects "Revolving Commitment" to trade financing.
"Revolving Commitment" refers to a credit facility that allows a borrower to obtain multiple letters of credit, secured by the lender’s commitment.
Definition of "Revolving Commitment" as a liquidity backstop
This definition links "Revolving Commitment" to financial safety nets.
"Revolving Commitment" means a contingent credit arrangement that ensures the borrower has access to funds in case of unexpected cash flow shortfalls.
Definition of "Revolving Commitment" as a corporate funding mechanism
This definition applies "Revolving Commitment" to large-scale business finance.
"Revolving Commitment" refers to a borrowing facility that provides companies with flexible funding to support general corporate purposes.
Definition of "Revolving Commitment" as a debt covenant component
This definition ties "Revolving Commitment" to financial compliance.
"Revolving Commitment" means the maximum amount available to a borrower under a revolving credit agreement, subject to compliance with financial covenants.
Definition of "Revolving Commitment" as a revolving tranche in a loan facility
This definition connects "Revolving Commitment" to structured lending.
"Revolving Commitment" refers to a specific tranche within a loan facility that permits revolving borrowings, separate from term loan tranches.
Definition of "Revolving Commitment" as an accordion feature in credit agreements
This definition links "Revolving Commitment" to expansion options.
"Revolving Commitment" means the portion of a credit facility that may be increased pursuant to an accordion feature, allowing additional borrowing capacity.
Definition of "Revolving Commitment" as a contingency funding source
This definition applies "Revolving Commitment" to emergency financial planning.
"Revolving Commitment" refers to a pre-approved credit facility available to the borrower for unforeseen expenses or working capital shortages.
Definition of "Revolving Commitment" as an overdraft protection facility
This definition ties "Revolving Commitment" to cash flow management.
"Revolving Commitment" means a pre-arranged credit limit that protects against overdrafts in business accounts, ensuring uninterrupted transactions.
Definition of "Revolving Commitment" as a cross-border financing arrangement
This definition connects "Revolving Commitment" to international borrowing.
"Revolving Commitment" refers to a revolving credit facility structured to support cross-border operations, enabling borrowing in different jurisdictions.
Definition of "Revolving Commitment" as a revolving standby facility
This definition links "Revolving Commitment" to contingency credit lines.
"Revolving Commitment" means a credit facility that remains available for use when needed, often structured as a standby liquidity source.
Definition of "Revolving Commitment" as a renewable financing instrument
This definition applies "Revolving Commitment" to perpetual funding options.
"Revolving Commitment" refers to a credit facility that renews automatically upon repayment, providing continuous financial flexibility.
Definition of "Revolving Commitment" as a margin-based borrowing facility
This definition ties "Revolving Commitment" to loan pricing structures.
"Revolving Commitment" means a lending arrangement where the borrowing capacity and interest rate vary based on the borrower's financial performance metrics.
Definition of "Revolving Commitment" as a revolving asset-based loan
This definition connects "Revolving Commitment" to secured lending.
"Revolving Commitment" refers to a credit facility where borrowings are determined by the value of eligible assets pledged as collateral, such as inventory or receivables.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.